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UK employers plan 4% pay rises in coming year, survey shows

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:

🗞️ Driving the news: British employers anticipate a 4% wage increase over the next year, according to a survey from the Chartered Institute of Personnel and Development
• This rate mirrors the previous forecast and occurs amidst a general slowing of the labor market and inflation rates

🔭 The context: The projected pay rises in the private sector are set at 4%, with the public sector slightly lower at 3%
• These expectations come as UK inflation decreased to 3.2% in March, with further reductions expected due to decreases in regulated energy prices

🌍 Why it matters for the planet: Stable wage growth, if aligned with productivity gains, can prevent economic overheating and excess inflation, which indirectly benefits sustainability by promoting economic stability and reducing volatility in resource use

⏭️ What's next: Future wage trends will heavily depend on productivity improvements and economic policies
• The Bank of England's upcoming decisions on interest rates will be crucial in shaping these dynamics, especially if wage growth pressures continue

💬 One quote: "While employers' pay rise expectations remain above pre-pandemic levels, we would expect them to adjust their plans for pay rises in the coming months, as inflation falls and the labour market continues to slow," said James Cockett, labour market economist at the CIPD

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